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137_ Software Asset Management

2007www.insight.com/uk

Insight White Paper

MKT046

Software Asset Management (SAM)

White Paper

Version 1.0 18.10.2006

By

Dr. Bernhard Schweitzer

One of the greatest challenges is

putting the right software on to the right desk at the

right time. This is exactly why Insight

offers optimised distribution services.

“

”




Insight White Paper

Implementing Software Asset Management

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Table of Contents

1. Software Asset Management ..........................................................................................3

1.1. Strategy ..................................................................................................3

1.2. Compliance .............................................................................................3

1.3. Security ..................................................................................................3

1.4. Projects ..................................................................................................4

1.5. Disaster Recovery .....................................................................................4

1.6. Change Management ................................................................................4

2. What is SAM? ................................................................................................................4

3. General Motivation for SAM ...........................................................................................4

4. Business Cases / Hard Facts ..........................................................................................5

4.1. Financial Impact .......................................................................................6

4.2. Legal Aspects ...........................................................................................7

4.2.1. ITIL / ISO / SOX ........................................................................................7

4.2.2. Pure Legal Aspects ...................................................................................9

4.3. ROI in Implementing SAM ..........................................................................9

5. How to implement Software Asset Management ...........................................................10

5.1. Scope of SAM .........................................................................................10

5.2. Who is Involved in SAM ...........................................................................10

5.3. Components of SAM ................................................................................ 11

5.3.1. Base Line Compliance: ........................................................................... 11

5.3.2. Processes ...............................................................................................12

5.3.3. Licence Pool ...........................................................................................13

5.3.4. Sample Processes ...................................................................................13

5.3.5. Roles/Responsibilities .............................................................................. 14

5.3.6. Policies ..................................................................................................15

5.4. Feasibility ..............................................................................................15

5.5. Continuous Software Asset Management ...................................................16

5.5.1. Electronic SAM Solution – Licence Logistic Server...................................... 17

5.5.2. Manual SAM Solution – SAM Desk ............................................................ 17

6. Insight’s Offering .........................................................................................................17

6.1. Licence Reconciliation Service ................................................................ 17

6.2. SAM Desk .............................................................................................18

SAM service: SAM Desk .................................................................................19

6.3. Media Management ................................................................................19

SAM-Service: Media Management ......................................................................19

Global Software Distribution ..............................................................................19

Express Media Duplication Service .....................................................................19

Convenience – ftp-Server ..................................................................................19

Your Benefi ts: ..................................................................................................19

6.4. Licence Logistic Server (LLS) ..................................................................20

6.4.1. SAM tool: Licence Logistic Server ...........................................................20

6.5. SAM and Client Management ..................................................................21



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1. Software Asset ManagementWhilst there may be a specifi c driver behind the need to begin a SAM project within an

organisation, it is apparent that these projects are fast becoming an industry standard.

More and more we are seeing SAM included in any RFI for supplier relationships. In

order to fully understand the customer’s needs we have to understand what drives SAM.

1.1. Strategy

To formulate effective and effi cient strategic plans, a business MUST

benchmark its existing position. Hardware and software contracts are generally

ineffectively or more often ineffi ciently put together because they don’t

actually refl ect the real difference between where a company is and where it is

going. Upgrade plans must refl ect a benefi t to the business and without clear

understanding of the value currently gained by the business, justifi cation for

proposed plans have to be assumed rather than confi dently understood creating

an unnecessary risk for the business. This applies to software Licence purchase

contracts (new Licences and upgrades), hardware agreements and projects

alike. It is apparent that many companies, for example, purchase Licences for

software titles without knowing if there are surplus Licences already available

within the organisation. Software is maintained with little or no cross-reference

to usage – how many titles do companies maintain that have ceased to be

used? These are all areas that can realise huge savings with better planning

and understanding about the existing position. The biggest driver in so far as

strategy is concerned is corporate certifi cation such as SOX, BASAL II, ITIL,

ISO 19770-1 and for smaller UK based organisations FAST.

70% of organisations have a 30% discrepancy between a planned IT inventory and

their actual IT inventory

Gartner Group

1.2. Compliance

As global software revenues decline software publishers will rely on other and

more creative methods of generating sales. As such software compliance is now

more prominent issue, and is therefore becoming a more important subject to

address. It is imperative to understand what software is deployed in order to

manage compliance, but to avoid wasting money, it is also extremely important

to understand if software is used before making any investment or change

– information that can be provided by performing a comprehensive Licence

Reconciliation Project (LRS).

Businesses have an average of $405 worth of unLicenced software per corporate

desktop - in other words they have 10 to 20 percent more software deployed than

they realise

Micropath

1.3. Security

It is a fact that a percentage of PCs and equipment will “disappear” from most

organisations annually. Without visibility of these assets accounting for this

loss is impossible to measure. External security risks – hackers, viruses etc are

usually comprehensively accounted for, however it is more often the case that

the greatest risk is an internal problem not external. How is this managed? Are

high-risk applications installed on the network? If so where and by whom? Who

is using them? Insight LRS will assist in identifying security vulnerabilities.

Companies with Asset Management practices experienced 10% fewer hours of

downtime and spent 22% fewer person hours on recovery per incident of downtime

IDC



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1.4. Projects

Software upgrades, hardware refreshes, security improvements, standardisation,

OS migrations etc are all projects that, to be executed effectively and

effi ciently, rely on knowledge of the environment that can only be provided by a

comprehensive reconciliation project and full SAM.

1.5. Disaster Recovery

In the event of a disaster and loss of infrastructure it is critical that software

needed to support the business can be provided at short notice - maintaining

business continuity. It is therefore essential that the contract agreed with the

supplier refl ects the businesses actual requirements. The inventory is essentially

an asset register that can be used for many purposes but in the event of a

disaster, none more so than assisting in the smooth and effi cient process of

business resumption.

1.6. Change Management

Change management is an issue that most Corporate IT departments have to

address in order to better control their environment and the associated costs.

Without and inventory telling them how the desktop environment is confi gured,

what software is installed, the devices connected to the network and their

physical locations it is impossible to highlight change. A full SAM project will

confi rm the software estate and any changes can be managed and reported so

will perfectly supporting a change management policy.

2. What is SAM?SAM – Software Asset Management - is an industry “buzz” word and there are many

defi nitions dependent on who an organisation speaks to.

The expression SAM is often used describe Licence management which is in part

correct however SAM provides much more.

“Software Asset Management is the term used for all those processes and the

infrastructures required to manage, monitor and protect the software assets of an

organisation throughout their entire life cycle. Software in the sense includes both the

Licences and the installed applications. SAM tracks business process as well legal

requirements.”

SAM provides answers…

Increasingly, many organisations and their management teams are being confronted

with software issues:

Which software is installed and where is it installed?

Is this software in use?

How many usable Licences do we own?

What is the company’s licensing situation; are there too many or too few Licences,

or the wrong ones?

Do we have software assets that provide limited ROI?

Are we spending too much on licensing?

Are we using the right Licences?

Are the right processes in place for Licence management?

Which software solutions fi t to our business needs?

How are we reacting to the demand of software manufacturers for Licence

verifi cation?

3. General Motivation for SAMWhy is SAM important? This is very valid question and one which needs to be

addressed in order to justify a SAM Project.

This question is extremely diffi cult to answer but if we examine SAM in more detail it

soon becomes apparent that there are very signifi cant benefi ts in implementing SAM

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In general there three major drivers to implementing Software Asset Management

Transparency It is impossible to manage what cannot be seen.

SAM = Visibility

Financial aspects SAM can recognise huge fi nancial savings

By having visibility of the entire software estate, software

Licence pools also become visible which in turn enables

harvesting and reuse. By defi nition this implies that only

Licences which are really needed are purchased..

Legal and compliance

aspects

SAM can ensure the legal position of a company: this is an

obli-gation for every organisation

Industry standards like ISO 19770-1, SOX, and ITIL are

common-place and have a direct effect on any SAM project

Policy and procedures are a vital part of the compliance

process and must be addressed.

Generally it will be a combination of these factors but not necessarily all of them that

will affect an organisation. However, the benefi ts to be gained from addressing these

aspects are self evident.

All of these drivers will, at some point, be integral part of any SAM project

4. Business Cases / Hard FactsWith the experience of many completed SAM projects we can estimate the possible

benefi ts for other organisations. However all these business cases are individual and

unfortunately nearly all of our customers insist on a non-disclosure agreement with

Insight, so we are only able to provide general information and not specifi c detail about

these projects.

It is important to us that our clients’ privacy is protected, however anonymous case

studies can be provided and on a case by case basis some of our clients will permit

contact to discuss their SAM experiences. .

Nevertheless it is possible to give some examples where the potential benefi ts can be found.

As already mentioned nobody implements a Software Asset Management solution

without expecting signifi cant benefi ts out of such a solution.

What are these benefi ts?

Are there specifi c examples of benefi ts which also apply to every organisation?

In which areas of the business can these benefi ts to be expected?

Can the exact numbers be calculated?

These are the most common questions which are asked before starting a SAM project.

In general these questions are not really easy to answer, because most of these issues

are very individual. Moreover, it is more like an individual puzzle pieces representing

single effects, which complete to a whole picture.

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We distinguish between two major areas of potential savings and potential positive

effect by SAM

4.1. Financial Impact

Having visibility of the current licensing position within an organisation is the

basis for cost savings when budgeting for software requirements.

In addition, it should be made clear that savings achieved by implementing SAM

must be understood as reduced spending rather than getting money back

In addition, it has to be outlined that savings by implementing SAM are to

understand as not spending money and not getting money back. Currently it is

very hard to sell used software, but times might change.

One of the major goals for implementing a SAM initiative within a company is to

prevent the unnecessary purchase of software which is not really required.

Knowing, to within 95% accuracy, what is required, gives a stronger negotiating

position when discussing Licence contracts. There are many examples where the

knowledge from SAM has led to signifi cant savings up to several millions at one

time.

Making the right decisions is vital and mistakes can be costly. SAM enables

informed decisions which in turn lead to the right choice. For example does

a Microsoft Enterprise Agreement make more sense than a Select Agreement

dependant on the products and numbers in use in the organisation?

On the other hand what level of Enterprise Agreement should be in place? Do

you need a “full platform” (100% Offi ce Pro) or is 20% Offi ce Pro enough? If

you know the actual usage of Access then you have a good negotiating position.

Example: By having SAM an 8,000 PC customer could save more than 2.5 M€ when

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choosing a managed Microsoft select agreement instead of the all inclusive solution

enterprise agreement.

However this does not mean that in other cases an Enterprise Agreement is not

the better solution.

Establishing and using a Licence pools to get knowledge of free Licences in the

company and use them fi rst before buying new ones.

This may seem obvious, but there very few companies which use this approach

Savings of approximately 5-8% of the Licence budget has been realised in

several large companies by employing Licence harvesting.

Savings by standardisation: Experience shows that a large number of the

companies use several different products for the same purpose. One very

common example is host emulation software. By standardising on one tool instead

of, for example three, puts you in a better negotiating position for approximately

three times higher volume.

A 10, 000 PC customer could immediately save in the region of 1.2 M€ by

consolidating the host emulation solution from three to one, therefore getting a

better volume contract for the entire estate.

Transfer of Licences between companies with in the same corporate group: In

reality it is commonplace for companies within one group not to communicate

their Licence position.

Experience has shown that one company may be over Licenced, another

company under Licenced. If global visibility was in place these Licences could

be shared and costs transferred. However what happens in reality is that when

there is no visibility organisations tend to over buy Licences to cover a potential

Licence discrepancy. This cost is avoidable with SAM.

We assume cost savings by allocating Licences between companies within a

group of approx. 5 -10%.

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Our experiences from several SAM projects can justify this assumption.

Many Products are nice to have, but are rarely used. There are a number of

options which can deal with this type of scenario

The measurement of the usage of certain software products such as MS Project,

Adobe Acrobat, will identify the actual need of the product. Negotiation with the

vendor may allow the de-installation of the product and consequently release the

Licence for reuse.

Another option features Licence Logistic Server. It is possible to entitle someone

to use a software product on a time bound basis. That means after predefi ned

period the software will be de-installed automatically.

Using this approach could save approx. 30% of the Licence cost for such a product.

Example: based on the calculation of a 2.500 PC customer

Products Products installed Products used Savings (€)

MS Offi ce Pro 100% 20% ~150K€

MS Visio (Pro/Std) 25% 10% ~85K€

MS Project 15% 7% ~100K€

Adobe Photoshop 8% 3% ~85K€

Adobe Acrobat 20% 5% ~120K€

Other Products ~500K€

Oracle ~50k€

Legal Risk ~450k€

Sum Savings (total) ~1.570K€

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Process costs: As already mentioned SAM has a lot to do with processes.

Streamlining existing processes helps to avoid double processing the same things

at several points in the company. These savings are not easy to calculate, but it is

obvious that effort can be reduced therefore increasing productivity.

Example: Centrally procuring Licences only once a quarter will save internal

costs... The costs for one buying process is assumed by 200€ each by Gartner.

4.2. Legal Aspects

Beside these measurable savings there are some benefi ts which are diffi cult to

express in hard facts. However for many companies they are extremely important.

4.2.1. ITIL / ISO / SOX

In 2002 after the Enron crash, a law was set up in the US; the Sarbanes Oxley

Act (SOX). This law deals with the responsibilities and the reporting rules for

business numbers. It also deals with the documentation of the processes

dealing with this numbers. What is often overlooked is that Licences are

assets like all other assets within a company (average 780 Euro / PC); the only

difference being is that they are intangible, but they are also affected by SOX.

It is not just the value of a single Licence but the net worth of all the Licences within

the group.

There are cases where the board did not sign the fi nancial statement because of the

lack of transparency of the licensing position within the company.

Internal reviews are methods of addressing the licensing situation within a company.

However anybody who had been affected by such an internal audit knows how

inconvenient that can be. The internal effort and the discomfort can be very high.

Software Asset Management helps to get the right answers for these reviews with a

minimum of effort.

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ITIL / ISO 19770-1: Many companies follow the standards ISO and ITIL. Both of

these standards are dealing with SAM. Following these standards leads to various

advantages in different industry areas.

For Example an automobile supplier may only get a contract if the supplier

conforms to these standards.

ITIL describes the impact of SAM within the ITIL framework detailed in the ITIL

book “Software Asset Management”.

In the diagram left, the commonality between SAM and ITIL are marked in

green. It is obvious that SAM has a central position within the ITIL framework.

Unfortunately, many companies, which have implemented ITIL, have not

implemented the SAM piece. The reason might be that SAM is a very

interdisciplinary process and not, as with most of the ITIL related processes

mainly based in IT.

It is prudent to take the ITIL guidelines into consideration when implementing

SAM, even when ITIL currently is not the main issue in the company.

Recently (May 06) a new ISO standard (ISO 19779-1) was released. This

standard deals exclusively with SAM. It is also well aligned to the ITIL Standard

and BS 15000/ISO 20000 (IT Operations Management).

Unlike other ISO standards, ISO 19770 -1 describes “Outcomes” rather than

specifi c methods and procedures necessary to achieve a result

This standard is not just the basis for the certifi cation of a company; it is also a

best practice guideline for implementing Software Asset Management.

In total 27 different processes are described in this standard.

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Installled Hardware and Software

Proof of Licence Other DocumentationMetering

Distributions Master ReferenceSoftware Copies

Physical flowInformation Flow

Real World Entries: Part ofDefinitive Software Library(DSL)

Information about Real WorldEntries: Part of ConfigurationManagement Database (CMDB)

Directly Affected by SAM

Demand Managementand Tools

Demand Managementand Tools

HardwareInventory

Installed SoftwareInventory

Software LicenceInventory

Indexes & DocumentManagement Systems

Procurement & Tools(ordering, delivery)

DeploymentManagement

and Tools

Licence Managementand Toiols

DiscoveryToolsSecurity

Tools

Security PatchesAnd Updates

AntiVirusUpdates

Other Softwareand Hardware

Received

Commonality between SAM and ITIL



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0

0

0

0

0

0

0

4.2.2. Pure Legal Aspects

Capability to provide appropriate information to software vendors: Most software

publishers have the right to audit their customers; Oracle, Microsoft and Adobe

are prominent examples. If a company does not have an appropriate answer to

such a request, they could be in a position where the publisher will dictate their

conditions for Licence procurement.

Appropriately set up Software Asset Management can provide the company with

the necessary data to give the right answers to any publisher.

This is a high risk factor and is growing across many industries as publishers

become more aggressive. Where there are discrepancies, penalties can amount

to 2-3 times the list price of the software product.

Every company is obliged to be Licenced correctly and the responsibility lies at

board level.

The Board, although concerned by the fi nancial penalties are more concerned

about how the companies reputation could be put at risk by a publisher induced

audit. This could have a potential negative effect on a stock for example.

4.3. ROI in Implementing SAM

To get accurate fi gures for the ROI when implementing SAM within a company a

specifi c pre-study has to be made to get reliable individual data.

Experience from the last 7 years we can say that the ROI correlates with the

complexity of the company.

That means that the benefi ts and the ROI for SAM are greater and faster if

the company is a complex company or group, particularly in a large global

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environment, where the fi nancial effects and the ROI are high / fast.

Smaller companies often are already quite standardised compared to larger ones.

There are some specifi c situations that indicate the ability to realise extreme

high fi nancial effects and ROI are very high.

Complex groups, especially international groups

Decentralised companies

Companies with a high frequency of mergers & acquisitions

Companies which are in the process of negotiating new Licence contracts

However the individual savings and the ROI borne out of the implementation of

Software Asset management still remains an individual thing.

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ROI/Savings

Com

ple

xity

of

the

Com

pan

y



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5. How to implement Software Asset Management

Implementing Software Asset Management is not rocket science but there are some key

factors which need to be considered in order to achieve clear results in a defi ned time

frame. The experience of the last years has shown that the following points have to be

taken in account in order to achieve acceptable results.

One of the most important issues is not to underestimate the “challenge” SAM

SAM is not implementing a tool

Understanding the interdisciplinary aspects of SAM

Setting reachable and feasible goals

Setting performance indicators

Having an appropriate budget

5.1. Scope of SAM

Defi ning the scope for the implementation of a Software Asset Management

is extremely important. There have been several projects that failed due to an

infeasible scope. “I want to include everything” is an understandable wish, but

in reality, this normally very diffi cult to achieve.

One successful approach which has proved viable many times is to sort out the

most common and important publishers, determined by cost and distribution,

for the fi rst step in implementing SAM.

Also the implementation of SAM in a pilot environment, such as one out of

several locations or countries can be another viable approach.

It is vitally important to fully scope a SAM implementation.

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5.2. Who is Involved in SAM

It will have become evident at this point that SAM is a topic that affects many

areas within an organisation.

SAM is not just an IT issue!

SAM is a topic which relates to:

The IT department

The purchase department

The controlling

The management

The workers council (in some countries) or HR department

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Management

Controlling

IT DepatrmentWorkers

Council

Purchasing

Department



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Due to the complexity of many organisations and the positioning of Software

Asset Management implementation may be diffi cult to fully achieve. However

if the project is driven from board level down then departments are obliged to

assist and comply with any implementation.

5.3. Components of SAM

An individually tailored approach to a SAM implementation within an

organisation seeks to achieve the organisation’s specifi c goals.

Insight’s approach to Software Asset Management is a multi-faceted one in

which all component steps can be considered as unique services dealing with

unique but not necessarily related issues.

With this approach we seek to ensure that the implementation of SAM is

oriented to the needs of any customer and can be easily adopted to make such a

project “feasible”.

Importantly, our aim is to avoid an end result whereby the management of

100 Offi ce li-censes is actually more expensive that the acquisition of those

Licences in the fi rst place.

5.3.1. Base Line Compliance:

Step 1 in implementing SAM is to establish a baseline compliance state. That

means that at the end of this process the company knows precisely the “true“

Licence position

In Insight terms, this process is called the Licence Reconciliation Service (LRS).

Broadly speaking, this process deals exclusively with the company’s licensing

history.

Our experience has shown us that there is no Licence management tool which

can deal with a complex history of licensing. So this approach documents the

history one time only and then includes this documented status in the Licence

management solution.

The advantage of this initial phase is that the eventual Licence management

solution only has to deal with current and future licensing practices.

Base Line

Contract Data

Technical Data

Lice

nce

Dat

a

Base Line Compliance

Licence Management Tool- Licence Logistic Server

Licence Reconsiliatioon Service (LRS)

SAM Desk

Process Consultancy

Tool Based Licence MGT

Not Tool Based Licence MGT

Licence Management

FOUNDATION

Workshop

Project

Overview

Inventoryof Installed

Software

INVENTORY REPORTING CONSOLIDATION REPORTING ONGOING LICENCE MANAGEMENT

Optimisation andstandardisation of the

Software Asset Portfolio

Tool-supportedLicence Management

Licence LogisticServer

Stand-alone LicenceManagementLicence Desk

Development of aCost-optimised LicenceManagement Concept

Inventoryof exisitng Software

1. Reconciliation Status Report 2. Reconciliation Final Report



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The principle of the LRS process is quite simple, but the reality is often not so

simple.

The LRS process is a reconciliation of all existing Licences with all installed

applications in order to obtain a current licensing status.

Reconciliation itself is a two-step process. Step 1 is to reconcile all existing

Licences (including those purchased in the past) to current usable ones.

These current usable Licences are then reconciled with the software

applications which are installed or in use across the desktop and server estate.

Once this has been completed we can document the current licensing status.

The overall goal of this process is to obtain proven and documented licensing

status which will then help avoiding buying too many extra Licences.

The compliance status is the starting point for the “true” Licence management.

The LRS process has been developed over the past 7 years and is especially

designed to get defi ned results with a realistic and acceptable effort.

In more than 95% of 250 projects that we have run, customers have realised

enormous one-time savings as a result of this process.

5.3.2. Processes

Software Asset Management deals not only with data and tools, an integral part

of SAM is the processes, roles and responsibilities.

Implementing the appropriate processes is absolutely key to establishing a working

Licence management solution. It is important to understand that processes

affecting many areas of the organisation are involved in Licence management.

The task is to analyse existing processes and to modify them into to fi t the SAM

initiative without the need for major internal change within the organisation.

The picture above is also only an example but highlights that there are several

processes involved in Software Asset management.

The existing processes have to be analysed, as in many organisations some

processes exist which are not correlated to the core principles of SAM.

The combination of this knowledge and the defi ned needs of the customer leads

to new Software Asset Management processes.



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L ic ens e

P ool

A pprov a l

Ins ta lla tion

proc es s

R eques t

C ons io lida tion

P roc es s

Inv entory

ins ta lled

a pprov ed

L ic ens e

ex is t

a pprov ed

Y es

No

Y es

No

No

Y es

Ja

Nein

C ros s c harging

F eedbac k for free lic ens es

R eques t

A pprov a l

P roc urem ent

Ins ta lla tion

proc es s

S ta nda rd pro duc ts N o n s ta nda rd pro duc tManual Input

5.3.3. Licence Pool

At the core of any Software Asset Management process is the establishing of a

Licence pool.

The Licence pool can be defi ned as all free / currently unused Licences in an

organisation.

The overall aim of the Licence pool is to avoidance of purchasing Licences if

they are already available within the organisation. This may seem obvious but in

reality only very few companies have implemented such an initiative.

As shown in the Licence life cycle picture above, before any Licence

procurement activity, a check must be made to determine whether there is a

available Licence in the pool.

This seems to be an easy task but there are some obstacles which have to be

overcome.

How to deal with cross charging?

What is the value of a used Licence?

How to ensure that the Licence pool is fi lled?

Are there products that do not qualify for pooling?

In most cases, establishing a Licence pool requires far reaching business

decisions. This is another point where the involvement of an organisation’s

management is required.

5.3.4. Sample Processes

Managing a Licence pool often leads to a system which deals with several

products baskets.

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F ree L ic en s es

= L ic en s e P o o l

U s ed L ic en s es

= a l l l ic en s es w ith in th e c o m pa n y



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For products from the “standard” basket a process can be established whereby

products are installed without buying them. After a period of time (e.g. 3

months), a consolidated purchase of the installed products is made refl ecting

the change in the Licence pool.

For products from the “non standard” basket there is an immediate acquisition

of the Licence but only following verifi cation against the pool of the availability

of free Licences.

There is one very important point to mention: to defi ne the processes within the

organisation is one thing, to keep them running smoothly is another, and is a

task that will prove to be much more diffi cult. The only way to achieve this is to

implement roles and policies that defi ne the SAM processes at the same time

the processes are introduced.

5.3.5. Roles/Responsibilities

The interdisciplinary nature of Software Asset Management requires a very strict

defi ning of roles and responsibilities within the Licence management.

It is vital that defi ned persons with defi ned roles are responsible for the tasks

within Software Asset Management. It is also key that it is well communicated

that these people have these specifi c responsibilities.

The following list gives the most common roles within Licence management.

Role Responsibility

Licence Manager Managing and controlling the whole Licence

management. The general communication

interface for the Software Asset management

Whole responsibility, beside the general

responsibility of the board

Licensing expert Creates the balances for the licensing situation.

Creation and management of the Licence pool. He

is the expert for Licence questions.

Licence Administrator Secures the audit proof storing of Licences

Responsible for transparency concerning the

licensing “papers”

Inventory Adminis-

trator

Responsible for the delivery and the quality of the

technical inventory of the installed / used software

products

Licence acquisition Responsible for verifying whether there are

Licences in the pool before a purchase order is

placed.

Coordination / bundling of acquisition requests



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It is possible that one person has one role or one role is assigned to several

persons, but it is necessary that the roles are defi ned clearly.

There are some factors which support the effi ciency of these roles.

The people assigned these roles must have the power to fulfi l those roles.

Especially in complex corporate structures, a clear escalation path is necessary.

The Licence management must not be a paper tiger.

Support by management is key otherwise Software Asset Management will not

work

Need for dedicated resources to fulfi l the named roles

Regular training, because licensing is a very complex and dynamic area.

Support by specialists as no company has the capability to have continuously up

to date licensing know how.

Licence Policy

5.3.6. Policies

A Licence policy defi nes the rules that govern how to deal with Licences within

an organisation. The following should be covered by the Licence policy:

The authorisation of the licensing and the associated escalation path

How Licences are to be purchased

How Licences are cross charged within the organisation

These are normally very case specifi c, but in all cases it is important for every

participant in the SAM process to know his or her responsibility and also to have

clearly defi ned responsibilities.

Example: An internal service provider is responsible for the Licence management

of the group. For the provider it is essential to defi ne the products he or she

is responsible for. If this has been defi ned nobody can make the provider

responsible for an exotic product an employee might bring into the company,

something that in reality will always occur. Of course, a policy should be drafted

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that prohibits the employee from bringing the software into the organisation in the

fi rst place.

5.4. Feasibility

Software Asset Management, especially in large complex environments, can be

a very extensive project.

The challenge is to implement a SAM solution in a feasible way.

That means:

Defi ned goals have to be reached in a certain amount of time

Financial goals have to reached in short time (fast ROI)

The effort should not incur costs that outweigh the savings

This seems to be obvious, but many companies make SAM a science and the

subsequent effort invested will be extreme

The SAM solution has to be accepted in the company

How to achieve this?

This is a very important and central question. As always, there are no clear

answers. The answers will always be case specifi c. There are however some

general guidelines that should be followed:

Defi ning clear and reachable goals and time frames

Starting with a short “pre study” to clarify these goals

Defi ning steps for the implementation of SAM

Start e.g. with the most important vendors.

There will be a short-term quick win, which is internally very important.

Sometimes creative ideas are needed. Some vendors are open for very creative

contracts and such contracts can help avoid the need for complex SAM

processes.

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5.5. Continuous Software Asset Management

Software Asset Management has to be done continuously and not occasionally.

“Which is the right solution for my organisation?” is always asked when this

point is discussed.

There must be a solution in place once the historic data has been reconciled!

What the right solution for continuous Software Asset Management is will depend

on a number of factors specifi c to each case. However the 2 crucial factors in

every case are:

The size of the organisation, and;

The complexity of the organisational structure

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A step by step implementation has been proven to be an approach with good chances for success.

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A medium sized organisation (e.g. 3.000 PCs) which doesn’t have a particularly

complex structure (e.g. 1 subsidiary and centralised purchase department) can

be easily managed by employing “simple” solutions.

However a medium sized company with 30 subsidiaries and decentralised

purchasing is a totally different proposition and may need a more developed

Software Asset Management solution.

For medium sized and large organisations Insight offers one of two Software

Asset Management solutions:

5.5.1. Electronic SAM Solution – Licence Logistic Server

Software Asset Management can be handled using a dedicated electronic

solution. Licence Logistic Server (LLS) is Insight’s customised solution.

Based on the results from the base line compliance LLS controls of the

management of the Licences an organisation has acquired.

All the necessary processes and technology can be integrated into LLS, which

was designed specifi cally to be capable of connecting into any existing IT- and

procurement environment.

5.5.2. Manual SAM Solution – SAM Desk

Some companies prefer to leave the management of their Licence to a partner.

Insight offers a solution known as SAM Desk where an Insight employee will

manage the Licences on site. This resource is the interception between the

client and the entire Insight back offi ce. Allowing the client access to many

years of SAM and Licensing knowledge. This service is highly customisable and

is always adapted to the specifi c needs of the customer.

6. Insight’s OfferingInsight’s mission is to be the trusted advisor to all of our customers. For SAM, our aim

to help our customers achieve and maintain a compliant status by advising on Licence

management processes to facilitate the implementation of a SAM solution.

Our aim is that the customer reaches these goals without investing unnecessarily in

unneeded Licences. Our aim is also to produce cost savings for our customers.

6.1. Licence Reconciliation Service

Today many companies purchase software according to what they think is

needed, without looking into the availability and usage requirements of Licences

in the individual departments. The process eventually takes on a life of its own.

Either too many or too few Licences can end up costing you money, and unused

software is idle capital. Sooner or later, the time will come when the visibility of

the bigger picture is lost – along with a lot of money.

Licence Reconciliation Service (LRS) creates transparency and stability

At Insight we support you in the assessment and restructuring of your software

assets. Our Licence Reconciliation Service (LRS) offers you the ideal platform

for professional Licence management and provides you with the perfect tool for

appropriate and above all, simple licensing.



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The benefi ts of the Licence Reconciliation Service (LRS)

Transparent overview of products in use

Transparent overview of the current Licence situation

Analysis of current Licences

Basis for dynamic Licence management

Basis for needs-based procurement

Basis for informed licensing negotiations

Analysis of current Licence management processes

Tracking/Integration of Licence management

Basis for simplifi ed IT planning (budget)

Legal peace of mind

LRS in Detail The Workshop: The project kicks off with the representatives of all

relevant functions gaining a common understanding of the project and agreeing on

its scope.

Inventory of available software products:

An existing or newly implemented inventory tool is used to identify the installed

products. Key criteria: Highest quality, minimal cost.

Inventory of available Licences: We work together with you to collect the

“Licences” available within the company. Key criteria: Cost/Benefi t ratio

Initial comparison of the data: An initial automated, and therefore audit-proof and

replicable comparison is made between installed products and Licences. The goal

is to optimally match the two.

Status quo report: A preliminary report informs you of the current status and

serves as the basis for decision-making regarding improvements and optimum

licensing.

Consolidation: In this phase, the preliminary status is consolidated and changes

discussed and implemented.

Second comparison: The updated inventory data of installed applications and the

optimised licensing situation are reconciled and used as the basis for a

fi nal report.

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Final report: Defi nes the Licence pool and lays the groundwork for optimised

Licence management.

Achievement of compliance: You receive written certifi cation from Insight that

your company has achieved compliance

6.2. SAM Desk

SAM Desk will help you take control of your costs, the complex issue of global

licensing and the legal aspects of Licence compliance.

SAM Desk offers a broad range of services, which assists you in the

optimisation of your SAM processes. In most cases, SAM Desk is implemented

directly with the customer by an Insight employee. SAM Desk offers access to

Insight highly specialised SAM and Licensing experts

The result: professional software procurement and administration.

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SAM Desk contains an array of individual solutions. The following services can

be selected and combined by you:

SAM service: SAM Desk

Licence analysis

Individual company Licence pool

Licence and expenditure benchmarking

Licence monitoring

Licence tracking and reconciliation with current needs

Management of Licence benefi ts

Assistance with licensing decisions

Licence Desk offers you several advantages:

You save money, because you optimise software licensing.

You improve security, because your licensing now complies with the terms of the

agreements and more importantly, licensing complies with your needs.

You are always up-to-date, because the specialist from Insight manages all

software processes and ensures exact matching to the real time needs of your

company.

6.3. Media Management

One of the greatest challenges is putting the right software on to the right

desk at the right time. This is exactly why Insight offers optimised distribution

services.

SAM-Service: Media Management

Global software distribution

Express media duplication

ftp-Server

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Global Software Distribution

We create individual software solutions for you and send them to you at the right

point in the software life cycle.

Express Media Duplication Service

We duplicate your previously Licenced software, and deliver the data-media

anywhere in the world.

Convenience – ftp-Server

You receive a password-protected company account. With this, you can download

the software that you need from our FTP server within 24 hours after availability

of the fi rst media kit.

Your Benefi ts:

Low cost

Short delivery times

Standardised software at every workstation

Simultaneous distribution of software

Ease of use

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6.4. Licence Logistic Server (LLS)

Many companies spend a number of SAM tools. However a large proportion still

has little control of their Licence management. As a result, the use of software is

uncoordinated and this combination of decentralised procurement procedures and

almost random installation methods costs many companies time and money.

LLS monitors procurement, distribution and administration of software in one

comprehensive application that works by integrating existing tools and systems.

6.4.1. SAM tool: Licence Logistic Server

The electronic SAM solution from Insight

Visibility of Licence pools

Clear defi nition in an access plan of who is permitted to use or purchase a

software Licence

Introduction of a self-service concept.

An overview of how to access the software

Clear enforcement of company standards, resulting in uniformity

An end to chaotic procurement and distribution

Prevention of licensing mismatching

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Licence Logistic Server ensures an optimum utilisation of all software rights you have purchased and protects you from expensive mistakes.

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6.5. SAM and Client Management

The consistent and sustained use of client management within the company goes hand

in hand with the successful implementation of the right SAM service processes. Here

the existing infrastructure is integrated into the SAM concept. The focus is on fi tting

the client management technologies into your SAM processes.

Client Management – is an integral part of a company-wide SAM strategy

Use of SAM should incorporate their client management, whether this is achieved

through the use of a centralised server-based computing approach, or centralised fat

client management.

After more than 300 projects, our client management experts are familiar with the

necessary processes and the standard solutions in the area of client management.

Insight acts as a neutral advisor that provides tool-independent support for your

company in the development of optimum client management.

In addition to technical preparation and implementation, we also provide answers to

questions like:

What does optimum client management mean for you in connection with SAM?

What steps can I take as a customer to prepare?

Which of my PCs are the most expensive based on purchased but

unused software?

Which of my departments?

Organisational units?

How can I prevent software installations (individual installations or rollouts)

without the necessary software Licences?

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Our goal is always to use your existing software assets. That is why taking an inventory of the software in use is one of the fi rst steps in the SAM process. Why purchase new software to perform this inventory? The existing systems adapted early on in the SAM process, such as the technical inventory, are also used later for client management. We standardise, consolidate and automate your client management.

Cost savings of up to 30% per PC

Optimised IT personnel utilisation (up to 150 PCs per administrator)

Software allocation made to fi t with SAM processes

Only the introduction of process oriented client management guarantees you the cost savings expected through the implementation of a SAM strategy.

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